ZIM reports strong earning in First Quarter, Net Income of $296 Million
HAIFA : ZIM Integrated Shipping Services Ltd. announced its consolidated results for the three months ended March 31, 2025.
First Quarter 2025 Highlights
- Net income for the first quarter was $296 million (compared to $92 million in the first quarter of 2024), or diluted earnings per share of $2.454 (compared to $0.75 in the first quarter of 2024).
- Adjusted EBITDA for the first quarter was $779 million, a year-over-year increase of 82%.
- Operating income (EBIT) for the first quarter was $464 million, compared to $167 million in the first quarter of 2024.
- Adjusted EBIT for the first quarter was $463 million, compared to $167 million in the first quarter of 2024.
- Revenues for the first quarter were $2.01 billion, a year-over-year increase of 28%.
- Carried volume in the first quarter was 944 thousand TEUs, a year-over-year increase of 12%.
- Average freight rate per TEU in the first quarter was $1,776, a year-over-year increase of 22%.
- Net leverage ratio1 of 0.6x at March 31, 2025, compared to 0.8x as of December 31, 2024; net debt1 of $2.49 billion as of March 31, 2025, compared to net debt of $2.88 billion as of December 31, 2024.
Eli Glickman, ZIM President & CEO, stated, “ZIM began the year with positive momentum, delivering 12% carried volume growth and strong earnings in the first quarter. Drawing on our transformed fleet and enhanced cost structure, we generated Q1 revenues of $2.01 billion and net income of $296 million. Building on our proven track record of returning capital to shareholders, we declared a dividend of $0.74 per share, or $89 million, representing approximately 30% of our quarterly net income.”
Mr. Glickman added, “As we look toward the remainder of the year, the operating environment is highly uncertain, driven by a range of factors impacting global trade and economic expectations. For ZIM, our focus is on controlling what we can and responding to market shifts quickly with decisive actions. We continuously assess how to best allocate capacity and have taken steps to modify our network to match the changes in cargo flow from China and other Southeast Asian markets into the United States, including within the last week, which underscores the agile nature of our commercial strategy.”
Mr. Glickman concluded, “Despite the heightened level of uncertainty, we have reaffirmed our 2025 outlook of Adjusted EBITDA between $1.6 billion and $2.2 billion and Adjusted EBIT between $350 million and $950 million. We are confident that we have built a resilient business and will continue to benefit from the strategic investment in our fleet with larger, more modern, cost-effective capacity, approximately 40% of which is LNG-fueled. Supported by our lower cost base, we believe ZIM is well positioned to drive profitable growth over the long term.”
Financial and Operating Results for the First Quarter Ended March 31, 2025
Total revenues were $2.01 billion for the first quarter of 2025, compared to $1.56 billion for the first quarter of 2024, mainly driven by the increase in freight rates and carried volume.
ZIM carried 944 thousand TEUs in the first quarter of 2025, compared to 846 thousand TEUs in the first quarter of 2024. The average freight rate per TEU was $1,776 for the first quarter of 2025, compared to $1,452 for the first quarter of 2024.
Operating income (EBIT) for the first quarter of 2025 was $464 million, compared to $167 million for the first quarter of 2024. The increase was driven primarily by the above-mentioned increase in revenues.
Net income for the first quarter of 2025 was $296 million, compared to $92 million for the first quarter of 2024, also mainly driven by the above-mentioned increase in revenues.
Adjusted EBITDA for the first quarter of 2025 was $779 million, compared to $427 million for the first quarter of 2024. Adjusted EBIT was $463 million for the first quarter of 2025, compared to $167 million for the first quarter of 2024. Adjusted EBITDA and Adjusted EBIT margins for the first quarter of 2025 were 39% and 23%, respectively. This compares to 27% and 11% for the first quarter of 2024, respectively.
Net cash generated from operating activities was $855 million for the first quarter of 2025, compared to $326 million for the first quarter of 2024.
Liquidity, Cash Flows and Capital Allocation
ZIM’s total cash position (which includes cash and cash equivalents and investments in bank deposits and other investment instruments) increased by $230 million from $3.14 billion as of December 31, 2024 to $3.37 billion as of March 31, 2025. Capital expenditures totaled $78 million for the first quarter of 2025, compared to $24 million for the first quarter of 2024. Net debt position as of March 31, 2025, was $2.49 billion compared to a net debt position of $2.88 billion as of December 31, 2024, a decrease of $382 million. ZIM’s net leverage ratio as of March 31, 2025, was 0.6x, compared to 0.8x as of December 31, 2024.
First Quarter 2025 Dividend
In accordance with the Company’s dividend policy, the Company’s Board of Directors declared a regular cash dividend of approximately $89 million, or $0.74 per ordinary share, reflecting approximately 30% of first quarter 2025 net income. The dividend will be paid on June 9, 2025, to holders of record of ZIM ordinary shares as of June 2, 2025.
All future dividends are subject to the discretion of Company’s Board of Directors and to the restrictions provided by Israeli law.
Use of Non-IFRS Measures in the Company’s 2025 Guidance
A reconciliation of the Company’s non-IFRS financial measures included in its full-year 2025 guidance to corresponding IFRS measures is not available on a forward-looking basis. In particular, the Company has not reconciled Adjusted EBITDA and Adjusted EBIT because the various reconciling items between such non-IFRS financial measures and the corresponding IFRS measures cannot be determined without unreasonable effort due to the uncertainty regarding, and the potential variability of, the future costs and expenses for which the Company adjusts, the effect of which may be significant, and all of which are difficult to predict and are subject to frequent change.
Full-Year 2025 Guidance
In 2025, the Company continues to expect to generate Adjusted EBITDA between $1.6 billion and $2.2 billion and Adjusted EBIT between $350 million and $950 million.
